Facebook has provided more evidence that it can turn eyeballs into profit as the maker of the world’s most popular app and social website trounced Wall Street’s estimates, sending its shares to an all-time high.
Advertisement
Wall St anticipated revenue of $5.8 billion, but the company managed to beat those expectations bringing in $6.4 billion in revenue.
We see a world where video is first, with video at the heart of all of our apps and services.
Facebook also broke records in usage metrics, again: The company had a whopping 1.71 billion monthly active users in June, compared to 1.49 billion monthly actives a year ago.
Mobile advertising revenue represented approximately 84 percent of advertising revenue, up from about 76 percent of advertising revenue a year earlier.
Mobile DAUs were 1.03 billion on average for June 2016, an increase of 22% year-over-year. Mobile advertising revenue played a massive role in the current gains as it accounted for over 80% of the company’s total advertising revenue.
The company’s stock rose $8.01, or 6.5 percent, to $131.35 in after-hours trading.
Facebook is also making more revenue per user than at any point in its history.
Facebook had 1.71 billion monthly users as of June 30, up 15 percent year-over-year.
Total revenue rose 59.2% to $6.44 billion, compared with the estimate of $6.02 billion. “Over the next three years, we’re focusing on continuing to build out community and help people share more of what matters to them”, Zuckerberg said on Wednesday.
Just how good was its quarter? Meanwhile, Instagram has more than 500 million monthly users.
There’s no question that video is the future of Facebook. The bottom line: two thirds of Facebook users are on the service every day.
Advertisement
Facebook has yet to say how much money Instagram makes, but research firm eMarketer predicts it will make $1.5 billion in revenue this year. Facebook made $3.82 per user on average worldwide in the most recent quarter, up from $2.76 a year earlier.
